Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (April 2009)
38 slides from Mlp's roadshow presentation, Apr 1, 2009
Slide 1: Individuality requires partnership
Individuality requires partnership Uwe Schroeder-Wildberg, CEO Roadshow Frankfurt April 1, 2009
Slide 2: Agenda
Agenda 1. Highlights 2008 2. Results FY 2008 3. Strategy and market developments 4. Outlook and summary 5. Appendix Page 2 MLP Roadshow, Frankfurt – April 1, 2009
Slide 3: 1. Highlights 2008
1. Highlights 2008 Frankfurt - April 1, 2009
Slide 4: Highlights FY 2008
Highlights FY 2008 • Far-reaching financial crisis led to significant restraint on the part of clients • MLP still achieved total revenues almost equalling the record level of 2007 • No involvement in any risky capital market business – MLP has a very resilient balance sheet and excellent liquidity
Slide 5: Financial crisis led to significant restraint on the part of investors
Financial crisis led to significant restraint on the part of investors Inflows – Retail funds 2008 Holders of mutual funds in Germany [in € bn] [in million] 10 12 0 10 -10 8 9.8 -20 6 7.9 7.7 6.6 -30 4 -40 2 -50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2001 2001 2007 2007 H1 1. HY2008 2008
Slide 6: Attractive shareholder participation
Attractive shareholder participation Overview Total revenues EUR 597.7 million EBIT EUR 56.6 million Net profit EUR 31.1 million Dividend per share EUR 0.28 Page 6 MLP Roadshow, Frankfurt – April 1, 2009
Slide 7: 2. Results FY 2008
2. Results FY 2008 Frankfurt - April 1, 2009
Slide 8: FY 2008: Total revenues almost at previous year's level
FY 2008: Total revenues almost at previous year’s level Total revenues 2008 [in € million] 629.8 597.7 600 573.7 400 588.2 554.8 539.6 513.3 554.1 514.0 200 Revenues Revenues - Commissions and fees 34.1 40.8 Interest income 26.3 34.1 41.6 42.9 Other revenues 0 2006 2007 2008 Page 8 MLP Roadshow, Fra
Slide 9: Q4: Shortfall in total revenues due to capital market crisis
Q4: Shortfall in total revenues due to capital market crisis Total revenues Q4 2008 [in € million] 205.6 224.3 200 189.8 150 193.2 211.1 174.9 185.0 201.6 164.2 100 Revenues 50 Revenues - Commissions and fees 10.6 Interest income 8.2 9.5 12.4 13.2 14.9 Other revenues 0 Q4 2006 Q4 2007 Q4 2008 Page 9
Slide 10: Clients are reluctant to invest long-term
Clients are reluctant to invest long-term Revenues - Commissions and fees [in € million] Q4 2007 Q4 2008 in % 2007 2008 in % Old-age pension provision 156.0 123.8 -20.7 359.3 346.4 -3.6 Health insurance 11.7 12.8 +10.1 56.3 45.9 -18.5 Non-life insurance 2.8 1.5 -47.7 22.0 23.2 +5.5 Wealth management
Slide 11: Wealth management accounts for 16% of revenues from commissions and fees
Wealth management accounts for 16% of revenues from commissions and fees Revenues – Commissions and fees, 2008: € 514.0 million [in %] 2.4% 0.8% 2.4% 0.8% 4.5% 8.9% Old-age pension provision Old age pension provision Wealth management Wealth management11,461 Health insurance 16.0% Health insurance N
Slide 12: Adjusted EBIT 2008
Adjusted EBIT 2008 Continuing operations EBIT [in € million] Effects from the financial One-off effects ~12.3 and economic crisis ~ 19 ~ 91 3.3 3.8 ~ 6.0 2.5 56.6 68.9 Drop in revenues Unexpected loss TPC Tax liabilities Impairment for rented-out Cost for the office building changes to the German In
Slide 13: Operating EBIT margin: 11.5%
Operating EBIT margin: 11.5% Continuing operations Income statement [in € million] Q4 2007 Q4 2008 2007 2008 • Operating EBIT margin Total revenues 224.3 189.8 629.8 597.7 FY 2008: 11.5% EBIT 56.6 17.1 113.9 56.6 • Finance costs burdened by (one-time) high dividend Finance cost -1.4 -0.5 -3.9 -9.5 t
Slide 14: Stable assets under management
Stable assets under management New business and assets under management Old-age pension provision Assets under management [in € bn] [in € bn] 10.8 11.4 11.4 10 8 8.3 6.8 6.6 6 4 5 2 0 0 2007 2008 2005 2006 2007 2008 Page 14 MLP Roadshow, Frankfurt – April 1, 2009
Slide 15: MLP is financially strong
MLP is financially strong MLP Group – selected balance sheet items [in € million] 31/12/2007 31/12/2008 Intangible assets 184.7 162.4 Financial investments 52.4 179.9 Cash and cash equivalents 37.3 38.1 Other receivables and other assets 162.1 147.1 • Liquid funds of € 210 m • Equity ratio: 28% Shar
Slide 16: Client base continues to steadily increase
Client base continues to steadily increase Continuing operations Total number of clients 800,000 730,000 703,000 635,000 668,000 600,000 593,000 400,000 200,000 0 31/12/04 31/12/05 31/12/06 31/12/07 31/12/08 42,000 new clients gained in 2008 Page 16 MLP Roadshow, Frankfurt – April 1, 2009
Slide 17: High quality sales force
High quality sales force Continuing operations Total number of consultants 2,549 2,500 2,494 2,428 2,376 2,358 2,000 1,500 1,000 500 0 31/12/04 31/12/05 31/12/06 31/12/07 31/12/08 Page 17 MLP Roadshow, Frankfurt – April 1, 2009
Slide 18: 3. Strategy and market developments
3. Strategy and market developments Frankfurt - April 1, 2009
Slide 19: MLP is already implementing the major requirements
MLP is already implementing the major requirements Study by the ministry of consumer protection concerning better quality in financial consulting Major requirements: MLP situation: y Stronger orientation towards • Client-oriented consulting as customer requirements and the core of the business model
Slide 20: Targeted further development
Targeted further development Milestones of the past five years 2004 2005 2006 2007 2008/09 • Strengthening of • Sale of own • Majority holding in • Establishment • Acquisition independence insurers Feri Finance AG of MLP Hyp of TPC • Development of • Banking license • Accreditation • Acquisition occ
Slide 21: MLP – A broad-based consulting house
MLP – A broad-based consulting house Private clients Corporate clients Rating x MLP Finanzdienstleistungen x MLP Finanzdienstleistungen x Feri EuroRating Services (Business areas: occupational x Feri Family Trust pensions and corporate clients) x ZSH x TPC x Feri Institutional Advisors Independent i
Slide 22: Page 22 MLP Roadshow, Frankfurt – April 1, 2009
Page 22 MLP Roadshow, Frankfurt – April 1, 2009
Slide 23: TPC boasts first-rate reference clients - nationwide
TPC boasts first-rate reference clients - nationwide Extract Services Industrial Public enterprises Page 23 MLP Roadshow, Frankfurt – April 1, 2009
Slide 24: Introduction of a new Executive Committee
Introduction of a new Executive Committee Executive Board - MLP AG Dr. U. Schroeder-Wildberg (Chairman), G. Frieg, M. Suleiman, R. Schmid, A. Dittmar (Director) Executive Committee Dr. U. Schroeder-Wildberg Research/ Private clients Corporate clients Products Banking Operations Finance Investment M.
Slide 25: 4. Outlook and summary
4. Outlook and summary Frankfurt - April 1, 2009
Slide 26: Management agenda 2009
Management agenda 2009 Consistent and full utilisation of revenue potential Strict cost discipline – package of measures Beratungsqualität for reducing expenditure External growth through active participation in the industry consolidation Page 26 MLP Roadshow, Frankfurt – April 1, 2009
Slide 27: MLP's target group has the highest provision requirements
MLP’s target group has the highest provision requirements Continued high revenue potential in old-age pension provision Provision shortfall* 50% 45% 40% 35% University Graduates Part-time staff 30% Skilled workers Standard pensioner 25% 1954 1969 1957 1960 1963 1966 1972 1975 1978 1981 1948 1984 194
Slide 28: Targeted cost reduction of € 34 m
Targeted cost reduction of € 34 m Fixed costs [in € million] 320 314 310 • Cost savings of € 12 m in 2009 and a further € 10 m in 2010 300 290 • Additionally shortfall of € 12 m 290 of one-time expenses in 2009 280 280 270 260 2008 2008 2009e 2009e 2010e 2010e Page 28 MLP Roadshow, Frankfurt – April
Slide 29: Optimally equipped for consolidation
Optimally equipped for consolidation Growth through acquisitions Trend MLP Strengths Quality and Independence • MLP is subject to the highest qualitative requirements (independent broker, banking Æ Numerous statutory changes license) Æ Independent providers are gaining market share • MLP has long ex
Slide 30: Summary
Summary • Total revenues almost reached the record level of 2007 despite an extremely difficult market environment • MLP has developed itself to become a broad-based consulting house with a strong corporate business component • In 2009 MLP will continue to consistently avoid risk positions and will
Slide 31: 5. Appendix
5. Appendix - MLP’s business model and positioning - Statutory changes - Contact Frankfurt - April 1, 2009
Slide 32: Independent business model and one-stop for lifetime financial solutions
Independent business model and one-stop for lifetime financial solutions Independent Business Model is unique in the German Market Target group focus + Quality of advice + Independence Objectives Advice Solution 25 28 31 34 35 37 40 45 52 65 Planning Old-age provision management Insurance coverage N
Slide 33: Independence is key for MLP's customer group
Independence is key for MLP’s customer group The most important demands of customers with an university degree 98% Information regarding the drawbacks of products 95% First class financial services 93% Comprehensive consulting / tailor-made offers 77% Offers from different product providers 68% Easy
Slide 34: Extensive statutory changes . . .
Extensive statutory changes . . . Regulatory requirements May 22, 2007 November 1, 2007 Beginning of 2008 Insurance Mediation Dir. MiFID German Ins. Contract Law Insurance brokerage Banks / Fin. investments Insurers/ Brokers y Rising requirements y Broadening of the y Increase in cash surrender conc
Slide 35: . . . lead to radical changes in the German financial industry
. . . lead to radical changes in the German financial industry Major Market Trends for Banks, Insurance Companies and IFAs Increasing regulatory requirements will further change the market place dramatically: Further optimisation of cost structure and processes Consolidation Professionalisation Spec
Slide 36: MLP is optimally prepared to meet the new requirements
MLP is optimally prepared to meet the new requirements Extensive new regulations: x Brokerage guideline, MiFID, VVG & x Flat-rate capital gains tax, healthcare reform Increasing competition: x Capability to adjust rapidly to changed framework conditions x Banks and new providers are entering the mar
Slide 37: Independent brokers gain significant market shares
Independent brokers gain significant market shares Effects of the regulation in Great Britain Sales by channel in 1992 Sales by channel in 2006 Direct sales Direct sales to to clients clients 2% Direct sales 7% via sales force Direct sales 7% via sales force 50% IFA IFA Banc- 39% assurance 73% 11% B
Slide 38: Contact
Contact MLP Investor Relations Alte Heerstr. 40 69168 Wiesloch Germany Helmut Achatz, Head of Investor Relations Ines Kittlitz, Manager Investor Relations Tel.: +49 (0) 6222 308 8320 Fax: +49 (0) 6222 308 1131 investorrelations@mlp.de www.mlp-ag.de Page 38